Austin KlarVanguard Properties · Lawyer Turned Real Estate Agent

Why Is Everyone Buying Apartments in San Francisco Now?

Name: Why Is Everyone Buying Apartments in San Francisco Now?
Uploaded: 2025-12-04T01:00:49+00:00
Duration: 55 s
Channel: Austin Klar
Description: In this brief commentary, Austin Klar explains that San Francisco’s multifamily market (specifically 2‑ to 4‑unit buildings) is rebounding sharply in Q3…

4 Dec 2025 · 1 min

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In this brief commentary, Austin Klar explains that San Francisco’s multifamily market (specifically 2‑ to 4‑unit buildings) is rebounding sharply in Q3 2025. Sales volume is up nearly 40% year‑over‑year despite a 12% drop in listings, creating a buyer‑seller imbalance that pushes up price‑per‑square‑foot and price‑per‑unit. The rapid rent growth—among the fastest in the nation—is driven by the AI hiring boom, a return‑to‑office push by major employers, and a broader influx of residents into a city with constrained housing supply. Klar predicts that if these trends continue, multifamily demand and prices will keep rising into the next year. He ends with a call‑to‑action to follow him for more real‑estate insights.

Chapters

After years of declines, the multifamily market in San Francisco is starting to take off thanks to skyrocketing rents. For the third quarter of 2025, the number of 2 to 4 unit buildings that have sold is up almost 40% compared to the same period last year, despite 12% fewer 2 to 4 unit buildings coming for sale. And this imbalance between the number of buyers looking for multifamily properties to the number of multifamily owners actually selling is creating increased competition, increasing the price per foot and the price per unit for 2 to 4 unit buildings. San Francisco's rental market has become one of the fastest growing rental markets in the nation, highest rent growth rates in the nation thanks to the AI boom, a number of people being called back to work by major companies, and more people moving to the city generally as city conditions continue to improve. We have a huge influx of people coming back without adequate housing supply, and it's causing rents to increase, and it's bolstering the multifamily market. If these citywide trends persist, expect multifamily demand to continue to rise next year with prices rising as well. Follow me for more Barry real estate.